A $1.3 Billion NBA Arena Is Taking Shape in San Antonio. At 63, the Job Can Stop an Ironworker’s Social Security Now and Raise It Later.
Returning to a construction job after claiming Social Security early can wipe out an entire year of checks, yet that loss quietly sets up a permanent benefit increase four years later. Here is how the math works on a $1.3…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
San Antonio’s planned $1.3 billion Spurs arena has its construction team. Mortenson and hometown builder Bartlett Cocke were selected in August to manage the project, which is expected to take approximately two and a half years once construction begins. The final property and lease agreements still need approval, but a project of that size eventually means years of work for skilled trades.
For an ironworker who claimed Social Security at 62 and later receives an offer to return, the paycheck presents an unusual reversal. The job can stop every Social Security check he receives at 63. Four years later, those missing checks can help raise his benefit for life.
The Bonus Is Just Another Piece of the Paycheck
Someone born in 1963 has a full retirement age (FRA) of 67. Until then, Social Security applies its retirement earnings test to wages and net earnings from self-employment. In 2026, someone below FRA throughout the year can earn $24,480 before the agency begins withholding $1 in benefits for every $2 above the limit. The calculation generally uses gross wages, not what remains after taxes, union dues or retirement-plan deferrals. Base pay, overtime, hazard pay and a signing bonus for current work all enter the same earnings total. Pensions, investment income and individual retirement account withdrawals do not.
Suppose the ironworker receives $95,000 in wages and a $10,000 signing bonus. His $105,000 total places him $80,520 above the limit, producing a calculated withholding amount of $40,260. His Social Security benefit is only $1,800 monthly, or $21,600 for the year. The agency cannot withhold more than it owes him, so all 12 checks can stop. The unused portion of the $40,260 calculation does not spill into the following year. A new annual earnings test begins in January.
The Checks Are Withheld, Not Simply Lost
The adjustment at 67 is where things become more interesting. Assume his $1,800 benefit reflects the standard 30% reduction for claiming at 62 with an FRA of 67. That implies an unreduced benefit of approximately $2,571 before subsequent cost-of-living adjustments.
If Social Security withholds 12 complete monthly checks at 63, the agency credits those months when he reaches FRA. Instead of retaining all 60 reduction months from the original age-62 claim, it can reduce the count to 48 months. That changes the early-filing reduction from 30% to 25%. Before accounting for later inflation adjustments or additional earnings, his $1,800 benefit would rise to approximately $1,929 at FRA.
The withheld $21,600 is not returned as a lump-sum refund. The payment formula improves by about $129 a month for the rest of his life. How long it takes to recover the withheld amount depends on how long he collects the larger check. His new wages may produce another increase if they replace a lower year in the 35-year earnings history used to calculate retirement benefits.
His Best Tax Break Does Not Help the Earnings Test
If Social Security stops all his checks from the beginning of the year, he receives no benefit to include in taxable income. That removes the usual concern about as much as 85% of those benefits becoming taxable during the high-wage year.
The contractor’s 401(k), if available, still matters. In 2026, the normal employee-deferral limit is $24,500. Workers who turn 60 through 63 can contribute an additional $11,250 if the plan permits, bringing the possible total to $35,750. Those deferrals can lower federal taxable income. They do not lower the wages Social Security uses for its earnings test. He can shelter part of the paycheck from current income tax without restoring any of the withheld benefits.
One Door May Still Be Open
Before returning to the trade, three details need attention:
- Report the expected wages and bonus immediately so Social Security can adjust the checks before an overpayment develops.
- Confirm whether the employer’s plan allows the enhanced $11,250 catch-up contribution.
- Determine whether fewer than 12 months have passed since his first month of entitlement.
Within that 12-month window, he may withdraw his application once, repay the benefits received and file again later as though the age-62 claim never happened. After the window closes, earnings-test withholding and the adjustment at FRA become the route back to a larger check (we also condensed the 62 versus 67 versus 70 question into a free one-page framework here: The Social Security Decision).
The arena may give him another chapter in the trade. Social Security can turn that return to work into a second chance at the claiming decision, and by the time the building is finished, his monthly benefit can be stronger too.
Contact [email protected] for any questions or corrections.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
